Fair point regarding Mt Ida. However, the fmg cost blow out needs to be placed in perspective that the project has been performed during the toughest period in recent history that impacted the supply chain globally due to covid. Since March 2020 costs to construction and projects have increased significantly and durations blown out. We are talking 30 to 40 percent easily. In this context, fmg are doing extremely well. Just my opinion - often because the pandemic has not ravaged developed nations especially within the mining sector there us a danger to not take into account the actual chaos this has created globally and the real challenges facing the supply chain line. Construction variance within a budget has a variance if 20 to 30 percent and delays can be prolonged significantly. Contractors who cannot fulfil will cancel contracts and pay the penalty (far cheaper). So do not underestimate fmg's achievements. In regards to the dso we both agree. However value is increased not in correlation with project development. The sp will act and move early. We need to look at peers valuation.
JNO Price at posting:
20.0¢ Sentiment: Buy Disclosure: Held
